US Tariffs on key trading partners may impact aerospace supply chains 

US tariffs on Canada, China and Mexico may have a direct impact on the US aerospace supply chain and beyond, because of the interconnected relationships between these countries. 

Canada and Mexico are two of the largest aerospace suppliers to the United States. 56% of Canada’s aerospace products are exported to the US, according to the Conference Board of Canada. 

“The imposition of 25% tariffs would have significant repercussions on the entire aerospace ecosystem, both here in Quebec and globally”, says Aero Montreal, a trade group speaking to Flight Global. 

“Our industry relies on deeply integrated supply chains that transcend borders. While this threat is concerning, it is also an opportunity to demonstrate the strength of our collaboration with governments and international partners”, the body added.  

There are also other areas to consider too, with Canada having outstanding orders valued at billions of dollars with US defense manufacturers including Lockheed Martin, Boeing and General Atomics. 

Mexico is one of Boeing’s major manufacturing locations and sources over $1 billion annually from more than 20 separate suppliers. 

The complexity of the aerospace supply chain means that components are shipped back and forth across borders as they are slotted and joined together to be inserted into aircraft. A Boeing 737, for example, has 2,000 parts which are made by 700 separate suppliers. The introduction of tariffs, economists argue, throws all of this into question. 

Airbus said that it had prepared for the possibility of tariffs and will adapt accordingly, following comments made by President Trump that he would “not consider an Airbus”, in a series of remarks on the upgrade of Air Force One. 

Airbus collectively employs 5,000 workers in the US, indirectly supporting 275,000 jobs among its 2,000 US suppliers across three sites; an aircraft manufacturing site in Alabama, a helicopter facility in Mississippi and a satellite business in Florida. 

The aircraft manufacturer has strengthened its position in the aviation market, reporting a 12% surge in net profits in 2024 and delivering 766 commercial jets to airlines, outcompeting Boeing, who delivered 348 planes. 

Speaking to the New York Times, Guillaume Faury, Chief Executive of Airbus, said that the effect of tariffs would mean that there would be an increase in the cost and price of airlines, which would impact the end customer too.  

He also pointed to the company’s record order backlog of 8,658 aircraft built on strong demand from other areas including the Middle East and India. 

Then there is China. China has only resumed accepting new 737 Max deliveries from Boeing in 2024, after a near five-year hiatus following the grounding of the aircraft in 2019.